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CMA Final · Corporate Financial Reporting · Valuation of Shares (including Determination of Goodwill)

Which of the following measurements falls outside the measurement and disclosure requirements of Ind AS 113 Fair Value Measurement?

Value in use under Ind AS 36 is outside the scope of Ind AS 113, because paragraph 6 excludes measurements that resemble fair value but are not fair value, such as value in use and net realisable value. The other items are genuine fair value measurements.

  1. AValue in use of a cash-generating unit under Ind AS 36Correct
  2. BFair value of a quoted equity investment on the National Stock Exchange
  3. CFair value of a decommissioning liability assumed in a business combination
  4. DFair value of an interest rate swap held by an entity

Explanation

Para 6(c) excludes measurements similar to but not fair value, such as net realisable value in Ind AS 2 and value in use in Ind AS 36. The other three are fair value measurements within scope.

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